Pennywises Party Planners offers a warranty for its products. In 2011, Pennywise sold 1,000 circus cannons for $800 each. Pennywise assumes that 5% of its cannons will be returned for warranty repairs averaging at $80 per repair. In 2011, 10 cannons were repaired under warranty for a total of $850. Prepare any relevant journal entries for Pennywise. There is no need to record any sales transactions.